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Silvercorp Metals Won Auction to Acquire The Kuanping Silver-Lead-Zinc-Gold Project, Henan Province, China
VANCOUVER, BC, Oct. 13, 2021 /CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) is pleased to announce that the Comp
About this update from Silvercorp Metals Inc.
[{"type":"text","content":" VANCOUVER, BC, Oct. 13, 2021 /CNW/ - Silvercorp Metals Inc. (\"Silvercorp\" or the \"Company\") (TSX: SVM) (NYSE American: SVM) is pleased to announce that the Company, through a 100% subsidiary of Henan Found Mining Co. Ltd. (\"Henan Found\"), Silvercorp's 77.5% subsidiary, has won an online open auction to acquire a 100% interest in the Kuanping silver-lead-zinc-gold project (the \"Kuanping Project\"). The Kuanping Project is located in Shanzhou District, Sanmenxia City, Henan Province, approximately 33 kilometres (\"km\") north of the Company's Ying Mining District and 30 km west of the Zhonghe Project. Auction Details and Payments The auction was for a 100% interest in the shares of Shanxian Xinbaoyuan Mining Co. Ltd. (\"Xinbaoyuan\"), an affiliate of a Henan Provincial government-controlled company located in Sanmenxia City, Henan Province. The only asset held by Xinbaoyuan is the Kuanping Project. The base auction price for Xinbaoyuan was US$8.1 million (RMB¥52.5 million) plus the assumption of US$2.1 million (RMB¥13.3 million) debt (the \"Debt\") of Xinbaoyuan. The final winning auction price was US$11.4 million (RMB¥73.5 million) plus the assumption of the Debt for a total US$13.5 million (RMB¥86.8 million). Henan Found is required to: (a) enter into a share transfer agreement within three business days after the auction, and (b) make the above payment within five business days after the execution of the share transfer agreement. The Kuanping Project The Kuanping Project covers an area of 12.39 km2, being approximately 3 km wide (east-west) and 5 km long (north-south). The Project's exploration rights are currently in a reservation period in accordance with China's mining law, and the Company is in a position to apply for the mining permit. Once the mining permit is granted, then the environmental permit can be applied for. Previous exploration activities completed include 1,458 metres (\"m\") of adits, 3,387 m3 of trenching, and 11,759 m of diamond drilling in 52 diamond drill holes between 2006 and 2013 focused on the 1 km by 1 km northwest corner of the project area. Exploration has defined six silver-lead-zinc vein structures and one gold-silver vein structure. The most explored vein structures are K3 and K4. K3 dips 25 - 55° to the north-northwest, and extends 600 m alon...